Steam & Boiler Package Solutions Entering a ~$2B Energy Market April 2019 “Bridging the gap between today’s use of resources and a zero-emissions future”
Disclaimer Environmental Clean Technologies Limited (“ECT” or “the Company” ) has taken all reasonable care in compiling and producing the information contained in this presentation. The Company will not be responsible for any loss or damage arising from the use of the information contained in this presentation. The information provided should not be used as a substitute for seeking independent professional advice in making an investment decision involving ECT. The Company makes no representation or warranty, express or implied, as to the accuracy, reliability, or completeness of the information provided. Environmental Clean Technologies Limited and its respective directors, employees, agents and consultants shall have no liability (including liability to any person by reason of negligence or negligent misstatement) for any statements, opinions, information, or matters, express or implied arising out of, contained in or derived from, or any omissions from this presentation. This presentation contains "forward looking statements" which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of ECT, industry results or general economic conditions, to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. In particular, certain forward looking statements contained in this material reflect the current expectations of management of the Company regarding among other things: (i) our future growth, results of operations, performance and business prospects and opportunities; (ii) expectations regarding the size of the market and installed capacity of our Coldry and/or Matmor plants; (iii) expectations regarding market prices and costs; and (iv) expectations regarding market trends in relation to certain relevant commodities, including benchmark natural gas, thermal coal and metallurgical coal prices and foreign currency exchange rates. Forward looking statements are only predictions and are not guarantees of performance. Wherever possible, words such as "may," "would," "could," "will," "anticipate," "believe," "plan," "expect," "intend," "estimate," "aim," "endeavour" and similar expressions have been used to identify these forward looking statements. These statements reflect the Company’s current expectations regarding future events and operating performance, and speak only as of the date of this material. Forward looking statements involve significant known and unknown risks, uncertainties, assumptions and other factors that could cause our actual results, performance or achievements to be materially different from any future trends, results, performance or achievements that may be expressed or implied by the forward looking statements, including, without limitation, changes in commodity prices and costs of materials, changes in interest and currency exchange rates, inaccurate geological and coal quality assumptions (including with respect to size, physical and chemical characteristics, and recoverability of reserves and resources), unanticipated operational difficulties (including failure of plant, equipment or processes to operate in accordance with specifications or expectations, cost escalation, unavailability of materials and equipment, delays in the receipt of government and other required approvals, and environmental matters), political risk and social unrest, and changes in general economic conditions or conditions in the financial markets or the world coal, iron and steel industries. The materiality of these risks and uncertainties may increase correspondingly as a forward looking statement speaks to expectations further in time. Although the forward looking statements contained in this material are based upon what the Company believes to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with these forward looking statements. These forward looking statements are made as of the date of this material and are expressly qualified in their entirety by this cautionary statement. We do not intend, and do not assume any obligation, to update or revise these forward looking statements, unless otherwise required by law. Prospective purchasers are cautioned not to place undue reliance on forward looking statements. This presentation is for information purposes only and does not constitute an offer to sell or a solicitation to buy the securities referred to herein.
Overview Entering a ~$2Bn pa energy market . 1 Steaming ahead… 5 Meet the team & partners The utility steam, hot-water and process boiler We’ve assembled a team of energy and engineering industry is stagnant, fragmented and weighed experts and partners to deliver our mission. down by high fuel cost, poor reliability and inefficiencies. Ou Our mission is to to chan ange that! 2 6 Market size and revenue potential Indicative Case Study A surprisingly large market, ripe for disruption. Delivering a sustainable >15% saving in operating Overview of the target market segments and cost and with biomass, a 30% drop in CO 2 revenue potential. emissions. 3 7 Delivering Solutions The business opportunity Owning & operating a boiler is a headache and Establishing initial volumes via our Coldry HVTF as a money pit for most businesses. We address the springboard to establishing a larger Coldry plant in energy trilemma: Economic security, energy the Latrobe Valley to restore energy affordability security and environmental outcomes. and reliability and improve revenue margins. 4 8 Our competitive advantage Business Strategy & Performance Metrics Mapping sales growth to capital upgrades for Our people. Our consultative approach. Our enhanced capacity and operational cash flows. commitment to delivering outcomes and reducing costs. 3 ECT | Investor Presentation | April 2019
1 | Steaming ahead… ECT is pleased to announce the launch of its steam and boiler package division with a focus on providing integrated solutions to the steam, hot water and process heating industry. Following extended commercial trials with multiple businesses in Victoria and Tasmania, ECT has confirmed its commitment to a long-term business model which aims to deliver: Integrated approach to steam, hot Installation of new multi-feedstock Operations & maintenance of new and water and process heat production solid-fuel biomass boilers old boiler systems Optimisation of fuel mix Replacement of ageing or operationally Re Controlling costs ü ü Maximise efficiency expensive steam sy ex systems Ensuring compliance ü ü Multi-feedstock flexibility Improved efficiency Fuel supply chain management ü ü ü Inbuilt fuel security Lower running costs ü ü Reduce CO 2 emissions Better environmental outcomes ü ü Reduce costs Design and construction ü ü Reduce business disruption ü Parallel installations with expensive Natural Pa Gas or LPG Ga G systems Improved energy security ü Reduced business disruption ü Lower overall running costs ü ECT | Investor Presentation | April 2019 4
1 | Steaming ahead… ECT’s clients are business that require steam or hot-water as part of their operations. Typically these utility heat systems are critical to the operations, running continuously in support of the core business. These systems are also typically not core to the skill set of the business and represent one of the largest costs behind labour, often higher than electricity. These customers include: → Brick and tile manufacturers → Meat processors → Dairy food manufacturers → Construction timber mills ….to name but a few. ECT | Investor Presentation | April 2019 5
2 | Market size & revenue potential 50,000MW ~$2B Energy Estimated size of the utility boiler capacity in Victoria Market and Tasmania of which half is relevant to ECT's business Victoria has the largest installed capacity in Australia for steam boiler systems Tasmania is the most energy constrained market in Australia ECT | Investor Presentation | April 2019 6
2 | Market size & target revenue Revenue layer #1 Fuel Sales Coldry Target ~$10B+ Market HVTF Revenue Steam Sales ~$1.6B 35,000 tpa ~$10Mpa Coldry Target Operations & Latrobe Valley Plant Revenue Maintenance 70,000 of 170,000 tpa ~$20Mpa New Boiler Packages ECT | Investor Presentation | April 2019 7
2 | Market size & target revenue Revenue layer #1 Fuel Sales ~$10B+ Steam Sales Revenue layer #2 Coldry Target Operations & Market HVTF Revenue Maintenance ~$500M+ 35,000 tpa ~$3Mpa+ Coldry Target New Boiler Packages Latrobe Valley Plant Revenue 70,000 of 170,000 tpa ~$6Mpa+ ECT | Investor Presentation | April 2019 8
2 | Market size & target revenue Revenue layer #1 Fuel Sales ~$10B+ Steam Sales Revenue layer #2 Operations & Maintenance Revenue layer #3 Coldry Target New Market HVTF Revenue ~$2B+ Boiler Packages 35,000 tpa ~$10-20M Coldry Target Latrobe Valley Plant Revenue 70,000 of 170,000 tpa ~$20-40M ECT | Investor Presentation | April 2019 9
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